How are you analyzing the numbers? Are they helping you protect your wealth?
I tend to be more of a big-picture thinker than a meticulous number cruncher. I prefer to keep an eye on the overall trends rather than delving into the nitty-gritty details of data and trying to predict how each data point will be adjusted when no one is watching.
However, there’s one number that keeps on growing without any sign of slowing down: American debt. We’ve surpassed the 33-trillion mark, which translates to an astonishing 250,000 dollars of debt for every working American!
Personally, I don’t know about you, but if someone forced me into a debt of 250,000 dollars, I wouldn’t be too thrilled.
Then there’s inflation, which, for me, is all about how much more it costs me to live, rather than some government statistic. I believe that my monthly expenses have gone up by about 25% since Joe Biden assumed office and introduced his “successful” Bidenomics program.
So, we have enormous debts and rising living costs: which are unlikely to come down anytime soon, even if inflation drops to zero. How much worse can things get?
Sadly, especially with the current batch of incapable corrupt politicians running the western world, a lot worse!
As investors and capitalists, we have seen our financial markets become as unstable as the current US Congress, but for the fleet of foot, this instability is providing opportunity across the board.
With so many products available to us we are spoilt for choice when it comes to the instruments we can use to generate income and protect our wealth. But that said, it remains a concern that too many players stick to too few instruments in just one or two sectors.
Each week I try to touch on different markets and encourage readers to expand their knowledge and investment portfolios, urging them to consider the wide array of products and tools available. But most people have the view that by focusing on one or two products they will become experts.
As an ex-Exchange trader, I understand the feeling of comfort you have when trading in a small fish bowl. However, I also realise the frustration and missed opportunities you experience, when your market is quiet and all the action is happening elsewhere.
The new speculators, who came into the markets to make money on crypto currencies should realise this by now. They seem to forget that they speculate to make money. This is the number one goal. If you can make money in BTC or can make it trading cocoa, then that is what you should be doing, Not sitting for months or years in a position that is going nowhere or continually losing money!
There is a place for experts in specific areas, and I learn a lot by reading the reports from some of them. However, those people whose decision making is based upon technical analysis, which is by far most new investors, I do encourage them to expand their art into other areas of investment, because you will never find the best opportunities to profit, unless you look everywhere.
More importantly, and at the risk of banging the drum once again, you need to diversify your portfolio if you wish to protect it.
Much has happened in the financial world over the past few years, and whilst we all have opinions, no one can be positive about what the future holds.
We can be optimists or pessimists about the immediate future, and we naturally err to the former. But with the quality of our political leadership being as low as it is, who knows how much worse there meddling is going to make our lives. And who can discount the chance of stupid knee-jerk decisions doing severe damage to our markets, especially crypto currencies.
I make no secret of my appreciation of BTC, and its potential to become a serious instrument for investors and users. But government intervention, increased rules and regulations, and a blinkered effort by the main players to ruin its promise by taking it mainstream, ie putting the control of crypto into the hand of governments and central bankers, has definitely changed my attitude towards what BTC offers.
Sure it can rocket. But so can gold, oil or sugar. So if I am looking to make money from speculating, why should I have all my capital tied up in one product, when other might offer me a better opportunity. I don’t want to miss out, but I also don’t want my dough sitting there doing nothing!
This week, there’s a fraud case in New York involving a billionaire property developer, yes, the Orange guy! The case revolves around obtaining bank loans based on fraudulently inflated property values.
You can debate the merits of this case from a political perspective, and that’s fair. However, there’s more to worry about than just Trump potentially going to prison.
There needs to be some concern about a government which can go back many years and question the information a business man presents to bankers or investors.
There are a lot of new companies raising capital for their projects and most of them are using glossy financial details to gain the capital required.
Certainly, past performance doesn’t guarantee future gains, and the value of investments can fluctuate. But what if a future government changes the rules retroactively and decides to pick on a company because its ESG score no longer meets their expectations?
Will future governments be able to claim that today’s companies or investment funds have raised capital on fraudulent claims.
Its worth a thought!
As we don’t know what the future will bring, I am becoming increasingly focused on wealth preservation.
The truth is, there’s no one-size-fits-all solution to protecting your wealth, so, once again, I come back to diversification.
My preferred choices remain gold, land, and energy. In equities, I lean towards stable utilities, with occasional forays into trendy options. Please note the term “forays”; I wouldn’t commit to any here-today-gone-tomorrow businesses or project.
I discussed commodities last week and still see potential in this sector. People need to eat, and, more importantly, while Western nations may face challenges, the democratization of wealth suggests that other parts of the world will continue to grow and this may offset some of the setbacks.
The recent erosion in commodity values might be offering us the opportunity to enter at advantageous levels, so do have a look at whats going on.
If you lack the knowledge or confidence to diversify outside of your normal investment sectors, I recommend exploring the various fractionalised programs offered by trademakers.
With a minimum entry of just $5,000, these investment programs are ideal for small and medium-sized investors looking to spread their risk, across numerous sectors, but lack the knowledge or time to do it themselves.
The post How are you analyzing the numbers? Are they helping you protect your wealth? first appeared on JP Fund Services.
The post How are you analyzing the numbers? Are they helping you protect your wealth? appeared first on JP Fund Services.
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